The National Union of Journalists is "facing a severe financial
crisis", according to a leaked document seen by Journalism.co.uk,
with the union said to have just three weeks worth of running costs
in cash.

The document, a report to the National Executive
Council from general secretary Michelle Stanistreet, outlines a
number of recommendations to try and tackle the situation,
including cuts to staffing costs and alternative ways to provide
professional training that will not cost the union.

The union is said to have around £300,000 in cash, which "only
amounts to three weeks running costs".

"If immediate action is not taken this money will run out in
October and the union would be insolvent," Stanistreet adds in the
report.

The union is currently consulting with staff over redundancies,
with a three week voluntary redundancy window closing on Monday (28
May).

The document states that the current estimate is that the necessary
savings in staff costs will mean the loss of nine posts out of 47
in total.

The report adds that over the past five years the union has seen an
18 per cent drop in membership figures.

"Given the scale of the crisis in our industry we cannot assume
that this decline will not continue," Stanistreet warns.

Stanistreet also states in the report that its Headland House
headquarters in London "has a negative pledge of £1.4 million on it
to the pension scheme and what is left over is effectively the
nominal Fighting Fund that is listed in our accounts.

"The building's current valuation, however, has dropped from £3.5
million to just £2.7 million.

"This means there is no ability to seek loans or extend our
overdraft - even if it was decided that such a step would be an
appropriate course of action."

As a result the union adds: "We need to be completely clear that
the way out of the crisis will involve cuts across all areas of the
union's expenditure."
Professional training

Stanistreet said that union-funded professional training activities
will be ceased, as the union prioritises resources "on the
organisation and representation of members".

"Finance committee asked me to explore alternative ways of
providing the service of professional training given that the
courses are well-received by members, and particularly useful to
freelances but to do so at no cost to the NUJ.

"I believe it is perfectly possible to achieve this with the aim of
ensuring that a programme of professional training, carried out by
NUJ members, is available to the broader membership and conducted
across all union centres."

Two options include the tendering of a contract for NUJ training
offered on an annual or three year contract or for training to be
"administered and delivered by the General Federation of Trade
Unions on behalf of the NUJ".

'Significant measures' already taken

The union outlines "significant measures" in the report which have
already been taken to reduce costs.

This includes a reduction in staffing and the number of issues of
its magazine for members The Journalist.

But the union adds: "At the same time the economic crisis and the
severe job losses and cuts within the broader industry have had a
knock on impact on union membership and subs income."

At the delegate meeting in Newscastle, due to be held in October, a
number of motions will require approval, Stanistreet says in the
report.

This includes an increase in subscriptions of five per cent, which
the general secretary added was "a difficult decision" but that
there was "no option".

To be passed this motion would need a majority of two thirds.

Update:
In a statement general secretary Michelle Stanistreet said the
National Executive Council has agreed a strategy "including cuts
across all areas of union expenditure, including provision for
staff redundancies".